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Vince Cable

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Registered: 27-10-2012

Vince Cable

Despite all the criticism from all sides, he still continues to defend screwing up the Royal Mail sale - http://www.bbc.co.uk/news/uk-politics-28259402
Does anyone actually like him? I can't believe people were even considering him to replace Nick Clegg!
41 REPLIES
nanotm
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Re: Vince Cable

despite the man being a bit of a bungler I don't see his assertions that utilising hindsight everything can be done better as being wrong.
if the committee feels that it was given bad advice then why did it sign off on the sale ?
to me this is a lot of hot air designed to ensure Clegg gets to keep leadership unchallenged until after the next election at least, I'm not sure if either of them is credible as a party leader both have serious problems although Cleg is at least liked more by the public even if he has strange ideas like the "hug a hoody campaign" well meaning but not necessarily clever .....
then again neither of them is as odious as some others on the front benches
just because your paranoid doesn't mean they aren't out to get you
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Re: Vince Cable

The fact remains that a big mistake was made, it cost the tax payer over £1bn and the person who holds ultimate responsibility has failed to apologise.
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Re: Vince Cable

Worth remembering that RM wasn't all sold off....  10% was allocated to staff at a discount, and the government still retains 30%.
nanotm
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Re: Vince Cable

sure they could of sold the shares at a higher price but the same argument would of been had as the share price would still have jumped up massively due to lots of people trying to buy something there wasn't enough of and a few hours days weeks months later there would be claims of the sale being handled badly and a fictitious "cost to the tax payer" being bandied about
the sale of shares raised money for the coffers, maybe not as much as it could have done had they adjusted the initial offering price but lets not forget they did polls which found that there wasn't a massive interest in becoming a shareholder so the price was accordingly lowered fractionally to ensure they got sold and to make sure as many as possible were gone within the hour they pre arranged bulk sales with investment groups, every company when initially floated sees share prices jump up several % some stay high but most drop quite quickly, if the shares were overpriced for the initial offering then shareholders would have run the risk of becoming negative equity holders within days and been less eager to purchase so they would of been unlikely to generate sales to push the price in the first place.
that all ignores the cross party committee that accepted bad advice on the valuation and failed to include several asset groups in the total company valuation for flotation but then can you hold a single minister responsible for an entire committee's bad judgement for accepting there recommendations and proceeding ?
just because your paranoid doesn't mean they aren't out to get you
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Re: Vince Cable

Quote
every company when initially floated sees share prices jump up several %

On your planet maybe they do, but not on this one! Attached is a pic of the Saga price (daily open, high, low, close) since flotation. Hardly a runaway success. Many companies, especially small ones, slump on flotation.
WTF
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Re: Vince Cable

I have no real problem with Vince Cable, but he screwed up with this (totally unnecessary) sale.
He's perfectly correct that, at the time of the sale, there were issues that were depressing the market and that would have affected the price they could get.  Thing is, there was absolutely no need to sell the Royal Mail at that particular time - even if you accept the need to sell, the sale could easily have been delayed a few months.  The timing was all about politics: getting the sale done before the unions could go on strike.
The fact that it also benefitted the Tories' friends in the city to the tune of £1 billion was just a happy - for the Tories, if the not the UK - side affect.
As for the idea that all floats see share prices hikes: tell that the Mark Zuckerberg  Roll eyes
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Re: Vince Cable

Quote from: nanotm
every company when initially floated sees share prices jump up several %

If that was the case, I would be a billionaire by now.
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Re: Vince Cable

I think when it comes to any UK government in the past decade selling off assets, I cannot think of any positive examples.
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Re: Vince Cable

Quote from: AndyH
Despite all the criticism from all sides, he still continues to defend screwing up the Royal Mail sale - http://www.bbc.co.uk/news/uk-politics-28259402
Does anyone actually like him? I can't believe people were even considering him to replace Nick Clegg!
Hardly matters if anyone likes him are not, come the next election  his party will be repeating history in the sense that they will all be able to arrive at the commons in a single taxi.
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Re: Vince Cable

it shouldnt have been sold in the first place.
TORPC
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Re: Vince Cable

@chrcoluk
I totally agree, as it was the worst move they could ever had done
Like a lot of other things that should not have been sold off
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Re: Vince Cable

Cable is a very intelligent man but you get the impression he feels aggrieved at not being party leader. He comes across as cold and calculating and someone that needs watching.
As for the RM sale, the idea was good but the execution faulty. Both the public and institutional interest in the sale indicated it was oversubscribed (up to 24% in one case) and that normally is a sign that the price can be set at the top end of expectations.
Cable was on today's Marr show and still defends the price Sad
nanotm
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Re: Vince Cable

I agree with how he administered the sale however I disagree with there being a need for it just as I disagreed with there being a need for any of the service industries to be sold off, in the short term they provide an instant ash injection but in the long run its always a loss generator since your no longer getting a share of the profits to put back into the economy on things like policing education welfare and healthcare, one of the major reasons the country is struggling to afford all of those things now when it wasn't so hard up for a long time .....
just because your paranoid doesn't mean they aren't out to get you
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Re: Vince Cable

Having worked for the electricity supply industry before it was privatized I can assure you that it was a total money sink, so what profits would you be referring to? And you obviously don't understand that a floated company can attract investment money from institutional investors rather than the taxpayer. This is a permanent saving.